Is China Exporting Deflation?

Nber Working Paper Series Exporting Deflation? Chinese Exports and Japanese Prices

Between 1992 and 2002, the Japanese Import Price Index registered a decline of almost 9 percent and Japan entered a period of deflation. We show that much of the correlation between import prices and domestic prices was due to formula biases. Had the IPI been computed using a pure Laspeyres index like the CPI, the IPI would have hardly moved at all. A Laspeyres version of the IPI would have ris...

Why isn’t China Exporting Automobiles? - A model of technology adoption

The Current Deflation in China: Causes and Policy Option

The Chinese economy showed the sign of overheating in the spring of 1993. As a countermeasure of overheating, the Chinese government began to implement a retrenchment program in July 1993 and the program lasted until 1997. The economic growth rate did not drop sharply because the program resulted in a soft-landing. The economic growth rate began a gradual slowdown in 1995 but has been maintaine...

Is Exporting a Source of Productivity Spillovers?

This paper investigates whether exporting generates positive productivity spillover effects on other plants operating in the same industry and whether exporting affects productivity of plants in vertically related industries. Using plant-level data from Chile we find that exporters improve productivity of their local suppliers but not of plants that purchase intermediate inputs from them. We al...

What Ails China? A Long-Run Perspective on Growth and Inflation (or Deflation) in China

Since 1994, China has experienced a prolonged period of sluggish growth and declining inflation. Prices have actually declined over much of the last three and a half years. These problems are often attributed to conditions of weak aggregate demand. Not unexpectedly, the Chinese government has cut interest rates and pursued expansionary Keynesian policies, but these measures have largely failed....